1. Administering Payroll for the United States
  2. Update TRU for a Worker in the US

Update TRU for a Worker in the US

Two cases when a worker changes tax reporting unit (TRU) are:

  • Global transfer: When they move to a new legal employer.

  • Local transfer: When they move to another department within your organization while remaining in their legal employer and payroll statutory unit (PSU).

How the Local and Global Transfer process handles the TRU association depends on your organization.

  • If there is only one TRU in the PSU, the flow automatically creates the TRU association for the assignment.

  • If there are multiple TRUs, and you don't specify which TRU to use during the transfer, the flow creates no TRU association.

    You must define it manually.

For this example, assume Vision Corporation operates supermarket and big-box retail stores in a US city.

  • Vision Corporation is a single legal entity responsible for employing and paying workers across all their stores.

  • You classify the supermarket and big-box retail stores differently for tax and social insurance reporting purposes. Vision Corporation therefore has two TRUs.

    • Vision Supermarket

    • Vision Big Box

You have an employee who has worked at a supermarket location for several years, and as of 10-May, they have secured a manager role at a wholesale store location.

Due to this promotion, you need to perform a transfer that:

  1. Updates their TRU from Vision Supermarket to Vision Big Box.

  2. Transfers the person to the big-box retail store payroll on 10-May.

  3. Maintains their semi-monthly payroll.

Create an assignment for the transfer

  1. You start by terminating the person's original assignment as of 09-May.

    This starts standard payroll termination processing, including the ending of element entries.

  2. Create an assignment effective 10-May.

  3. Because your PSU has two TRUs, you must do one of the following.

    • Select the Vision Big Box TRU during the transfer process.

    • After the transfer is complete, manually create the TRU association for Vision Big Box.

  4. Enter the person's earnings and deductions as required.

  5. Run the semi-monthly payroll for the period ending 15-May.

    The payroll process performs two payroll calculations:

    1. On the original assignment, it taxes and reports earnings against Vision Supermarkets for the period 01-May to 09-May.

    2. On the new assignment, it taxes and reports earnings against Vision Big Box for the period 10-May to 15-May.

Maintain the current assignment

  1. Navigate to the person's Tax Withholding card.

  2. Set the effective date to 10-May.

  3. Create a TRU association for Vision Big Box and association detail for the new assignment.

  4. Run the semi-monthly payroll for the period ending 15-May.

    The payroll process taxes and reports against Vision Big Box all your employee's earnings for the payroll period 01-May to 15-May. This is the active TRU on the process date of the payroll run.

What happens to the retroactive earnings

Assume this employee also has a backdated salary increase from 01-April that is to be paid on 15-May. In this case, the payroll process taxes:

  1. Retroactive salary payments against the Vision Supermarket TRU.

  2. Other payments in May against the Vision Big Box TRU.

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